A unit ownership estate may be created by an owner or the
co-owners of a building by an express declaration of their intention to submit
such property to the provisions of the act, which declaration shall be recorded
in the office of the county clerk of the county in which the property is
situated.

Unless it is plainly evident from the context that a
different meaning is intended, as used herein:

(a) "Declaration" means the instrument, duly
recorded, by which the property is submitted to the provisions of this act, as
hereinafter provided, and such declaration as may be amended from time to time;

(b) "Unit" means an enclosed space consisting of
one or more rooms occupying all or part of a floor or floors in a building of
one or more floors or stories regardless of whether it be designed for
residence, for office, for the operation of any industry or business, or for
any other type of independent use, provided it has a direct exit to a
thoroughfare or to a given common space leading to a thoroughfare; if so
provided in the declaration, a unit may include some portion of the land
constituting a part of the condominium property and improvements thereon not a
part of the common elements. A unit may include a series of buildings, not
connected or part of same structure if such is the intent of the owners of the
unit estate. This act, and any deed, declaration or plan for a condominium
project shall be liberally construed to facilitate the establishment and
operation of the project and provisions of any of the same shall be presumed to
be independent and severable;

(c) "Unit designation" means the number, letter
or combination thereof designating the unit in the declaration;

(d) "Building" means one or more buildings or
structures comprising a part of the property;

(g) "Unit ownership estate" means the ownership
of single units in a multi-unit building together with an undivided interest in
the common elements;

(h) "Common elements" means and includes the
general common elements and limited common elements. The term common elements
does not include unconstructed units unless otherwise specified in the
declaration or by the consent of the owners pursuant to the Unit Ownership
Estate Act;

(i) Unless otherwise provided in the declaration or by
consent of all the unit owners, "general common elements" means and
includes:

(1) The land, whether leased or
in fee simple, on which the building stands and such other land and
improvements thereon as may be specifically included in the declaration, except
any portion thereof included in a unit;

(4) The premises for the lodging
of janitors or persons in charge of the property as hereinafter defined;

(5) Installations of central
services such as power, light, gas, hot and cold water, heating refrigeration,
air conditioning and

incinerating;

(6) The elevators, tanks, pumps,
motors, fans, compressors, ducts and in general, all apparatus and
installations existing for common use;

(7) Such community and commercial
facilities as may be provided for in the declaration; and

(8) All other elements of the
property necessary or convenient to its existence, maintenance and safety, or
normally in common use;

(j) "Limited common elements" means and includes
those common elements which are agreed upon by all the unit owners to be
reserved for the use of a certain number of units to the exclusion of the other
units, such as special corridors, stairways and elevators, sanitary services
common to the units of a particular floor, and the like;

(k) "Common expenses" means and includes:

(1) Expenses of administration,
maintenance, repair or replacement of the common elements;

(2) Expenses agreed upon as
common by all the unit owners;

(3) Expenses declared common by
provisions of the act, or by the declaration or the bylaws;

(4) Expenses incident to limited
common elements which shall be borne as provided by the declaration or the
bylaws;

(l) "Common profits" means the balance of all
income, rents, profits and revenues from the common elements and facilities
remaining after the deduction of the common expenses;

(m) "Council of unit owners" means all the unit
owners;

(n) "Majority of unit owners," means the owners
of more than fifty percent (50%) of the aggregate interest in the general
common elements as established by the declaration. Any specified percentage of
unit owners means such percentage in the aggregate of such undivided ownership;

(o) "Recordation" means to file of record in the
office of the county clerk in the county where the land is situated, in the
manner provided by law for recordation of instruments affecting real estate;

(p) "Property" means and includes the land,
whether leasehold or in fee simple, the building, all improvements and
structures thereon, and all easements, rights and appurtenances belonging
thereto;

(q) "Declarant" means the owner or co-owners
referred to in Section 502 of this title who originally submitted the property
to the provisions of the Unit Ownership Estate Act by the filing of a
declaration as provided in Section 502 of this title, and their successors who
have been granted and have assumed the duties, obligations and privileges and
rights reserved to the original declarant under the terms of the declaration;

(r) "Unconstructed unit" or "unconstructed
building" means a unit or building as the case may be, which is owned by
the declarant and shown on the plan attached to the declaration pursuant to
Section 516 of this title, the construction of which has not been completed by
the declarant at the time of recordation of the declaration. For purposes of
this chapter a building is completed upon the completion of any unit in the
building and a unit is completed when its construction is finished to the point
that it is ready for occupancy.

A unit ownership estate as created and defined in this act
shall vest in the holder, exclusive ownership and possession; shall constitute
an estate in real property which may be conveyed, encumbered, inherited,
devised, or otherwise dealt with consistent with the laws of this state; and
shall, for all purposes, be deemed in law to be an estate entirely independent
of the other unit ownership estates in the building of which it forms a part.
The individual title and interest of such estate shall be recorded in the
manner provided by law for recording instruments affecting title to real
property. Such estate may be held and owned by more than one person, as defined
herein, in any manner recognized under the laws of this state.

(a) Each unit owner shall be entitled to an undivided interest
in the common elements in the ratio expressed in the declaration. Such ratio
shall be in the approximate relation that the estimated fair value upon
completion of the unit determined at the date of the declaration bears to the
aggregate estimated fair value upon completion of all the units having an
interest in such common elements.

(b) The ratio of the undivided interest of each unit owner
in the common elements as expressed in the declaration shall have a permanent
character and shall not be altered except as specifically provided in the
declaration pursuant to paragraph (i) of Section 514 of this title, or with the
unanimous consent of all unit owners having an interest, expressed in an
amended declaration duly recorded.

(c) The undivided interest in the common elements and
limited common elements set aside to the unit, shall not be separated from the
unit to which same appertains and shall be deemed conveyed or encumbered with
the unit even though such interest is not expressly mentioned or described in
the conveyance or other instrument. The common elements and limited common
elements shall not be conveyed separately from the unit.

The common elements, both general and limited, shall
remain undivided and no unit owner shall bring any action for partition or
division of any part thereof, except as specifically permitted in this Act. Any
covenant to the contrary shall be null and void.

Each unit owner shall comply strictly with the bylaws and
with the administrative rules and regulations adopted pursuant thereto, as
either of the same may be lawfully amended from time to time, and with the
covenants, conditions and restrictions set forth in the declaration or in the
deed to his unit. Failure to comply with any of the same shall be grounds for
an action to recover sums due, for damages or injunctive relief or both,
maintainable by the manager or board of managers on behalf of the council of
unit owners or, in a proper case, by an aggrieved unit owner.

No unit owner shall do any work which would jeopardize the
soundness or safety of the property or impair any easement or hereditament
without in every such case the unanimous consent of all the other unit owners
affected being first obtained.

(a) While the property remains subject to this act, no
lien shall arise or be effective against the property as a whole, but only
against each unit ownership estate and such lien shall attach in the same
manner and under the same conditions in every respect as liens or encumbrances
may arise or be created upon or against any other separate parcel of real
property subject to individual ownership; provided, however, that no labor
performed or materials furnished with the consent or at the request of a unit
owner or his agent, his contractor, or subcontractor, shall constitute the
basis for a mechanic's or materialmen's lien against the unit ownership estate
or any other property of any other unit owner who has not expressly consented
to or requested the same, except that for the purposes of this act such express
consent shall be presumed to have been given by the unit owner in case of
emergency repairs thereto. Labor performed or materials furnished for the
common elements, if duly authorized by the council of unit owners or its duly
authorized agent in accordance with this act, the declaration or bylaws shall
be deemed to be performed or furnished with the express consent of each unit
owner and shall constitute the basis for a mechanic's or materialmen's lien as
now provided by law against each of the unit ownership estates in the property
but shall be subject to the provisions of subparagraph (b) hereunder.

(b) When a lien against two or more unit owners is
asserted, each unit owner may discharge his unit ownership estate from such
lien by payment to the lienor of the fractional or proportional amount which is
attributable to his unit ownership estate. Such individual obligation shall be
computed by reference to the percentage of interest set forth in the
declaration. Upon such payment or satisfaction of the lien claim, the unit
ownership estate shall be free and clear of the lien claim but such release of
the unit owner shall not prevent the lienor from proceeding to establish and
enforce his rights against any other unit owner who has not so discharged his
obligation to the lienor.

(a) Except as provided in subsection (b) of this section
the unit owners are bound to contribute pro rata, in the percentages computed
according to Section 505 of this title, toward the expenses of administration
and of maintenance and repair of the general common elements and, in proper
cases, of the limited common elements, of the building and toward any other
expense lawfully agreed upon.

(b) A declarant, by specific reservation, in the
declaration as permitted by paragraph (j) of Section 514 of this title may:

1. Exempt unconstructed units
within unconstructed buildings owned by declarant from payment of its pro rata
share of the expenses described in subsection (a) of this section; and

2. Reserve the right to
contribute less than its pro rata share of such expenses for unconstructed
units within a completed building.Such
expenses shall not be less than twenty percent (20%) of such pro rata share.
The cost of administration and of maintenance, repair and insurance of any such
unconstructed building and any such unconstructed unit shall be borne solely by
the declarant until such time as such unconstructed unit and/or building has
been completed.Upon such completion of
a unit or building, the declarant's obligation for payment of the expenses
described in this section shall be governed by subsection (a) of this section.

(c) Except as provided in subsection (b) of this section,
no unit owner may exempt himself from contributing toward such expense by
waiver of the use or enjoyment of the common elements or by abandonment of the
unit belonging to him.

The declaration creating and establishing unit ownership
estates as provided in Section ;-2 502 of this ;-act title, shall be recorded
and shall contain the following particulars:

(a) Description of the land,

(b) Description of the building, stating the number of
stories and basements, the number of units, and the principal materials of
which it is constructed,

(c) The unit designation of each unit, and a statement of
its location, approximate area, number of rooms, and immediate common area to
which it has access, and any other data necessary for its proper
identification,

(d) Description of the general common elements and the
proportionate interest of each unit owner therein,

(e) Description of the limited common elements, if any,
stating which units shall share the same and in what proportion,

(f) The name of a person to receive service of process in the
cases hereinafter provided together with the residence or place of business of
such person which shall be within the county in which the property is located,

(g) The method which the declaration may be amended,
consistent with the provisions of this act,

(h) Any other details or restrictions in connection with
the property which the person executing the declaration may deem desirable to
set forth;-.,

(i) The declarant by a specific provision in the
declaration may reserve the right to annex additional property to the property
which was submitted to the Unit Ownership Estate Act under the original
declaration. If such right is reserved, the declaration shall also include:

(1) The legal description of the
property capable of being annexed, and the total number of units that may be
added by one or more such annexations;

(2) The time limit within which
the annexation shall take place from the recordation date of the original
declaration;

(3) A requirement that all
improvements intended for the property of each annexation shall be
substantially complete prior to each such annexation;

(4) The formula for determining
the undivided interest of each unit owner in the total common elements after
each such annexation, which formula may not be changed without the unanimous
consent of all the unit owners, and which formula shall be reasonably expected
to result in a ratio of the approximate relation of the value of each unit
after each annexation as it bears to the aggregate fair value of all units
after each such annexation;

(5) A description of the
annexation document to be executed and recorded by the declarant which shall
not require the consent of the unit owners. The annexation document shall state
the undivided interest of each unit owner in the common elements for each unit
which is a part of the total property after such annexation. However, such
undivided interest may be later changed in accordance with the act by a later
annexation;

(6) A requirement that the
improvements on the property to be annexed will be consistent with the
improvements of the property originally submitted to the declaration in terms
of quality and construction; and

(j) The specific formula for determining the amount of
contribution to be made by the declarant for unconstructed units and/or
unconstructed buildings if such contribution is less than the pro rata
contribution of the expenses described in subsection (a) of Section 512 of this
title.

(a) Deeds conveying unit ownership estates shall be
recorded and shall contain the following particulars:

1. The unit designation, whether
contained in the original declaration, or in an amended, restated or
supplementary declaration, which shall be identified by date, book and page of
recording; and

2. Any further details which
grantor and grantee may deem desirable.

(b) Deeds executed in compliance with this section shall
be sufficient to identify the interest conveyed or encumbered and shall be
entitled to be recorded in the office of the county clerk, in the same manner
as other documents relating to real property are recorded.

Any deed, mortgage or other instrument purporting to
convey, mortgage or encumber a unit ownership estate, or an interest in a unit
ownership estate, is effective only as to any unit in the unit ownership estate
in which the maker of such instrument owns an interest of record at the time
such conveyance or encumbrance is received for filing by the county clerk,
provided, a purchase money mortgage shall be deemed to create a valid lien upon
such of the units described in the mortgage as are also described in the
concurrent conveyances to the mortgagor. Such instrument shall not impair or
otherwise encumber title to any interest in the unit ownership estate not owned
of record by the maker thereof at the time of such conveyance or encumbrance.

There shall be attached to the declaration, at the time it
is filed for record, a full and exact copy of the plans of the building, which
copy of plans shall be entered of record along with the declaration. Said plans
shall show graphically all particulars of the building, including but not
limited to, the dimensions, area and location of each unit therein and the
dimensions, area and location of common elements affording access to each unit.
Other common elements, both limited and general, shall be shown graphically
insofar as possible and shall be described in detail in words and figures. Said
plans shall be certified to by an engineer or architect, whichever is
appropriate to the project, who is authorized and licensed to practice his
profession in this State.

The unit owners, by unanimous action, may remove a
property from the provisions of this act by an instrument to that effect, duly
recorded, provided that the holders of all liens affecting any of the units
consent thereto or agree, in either case by instruments duly recorded, that
their liens be transferred to an undivided interest in the property.

Upon removal of the property from the provisions of this
act, the property shall be deemed to be owned in common by the unit owners. The
undivided interest in the property owned in common which shall appertain to
each unit owner shall be the percentage of undivided interest previously owned
by such owner in the common elements and facilities.

(a) The administration of every property shall be governed
by bylaws, a true copy of which shall be annexed to the declaration and to the
first deed of each unit. The bylaws may be detached from the deed prior to
recording if the bylaws are filed of record and described on said deed by
reference to book and page, or if the grantee shall certify on the first deed
that the bylaws were so annexed and detached prior to recording.

(b) Any first deed to a unit prior to the effective date
of this act without a copy of the bylaws attached, shall be deemed to have
complied with the provisions of this section.

(a) Form of administration, indicating whether in charge
of an administrator or a board of administration, or otherwise, and specifying
the powers, manner of removal and, where proper, the compensation therefor,

(b) Method calling or summoning the unit owners to
assemble; that a majority of unit owners, as defined in Section 3(n)1
of this act, is required to adopt decisions; who is to preside over the meeting
and who will keep the minute book wherein the resolutions shall be recorded,

(c) Care, upkeep and surveillance of the building and its
general or limited common elements and services.

(d) Manner of collecting from the unit owners for the
payment of the common expenses,

(e) Designation and dismissal of the personnel necessary
for the maintenance, upkeep and repair of the common elements,

(f) Such restrictions on and requirements respecting the
use and maintenance of the units and the use of the common elements, not set
forth in or appended to the declaration, as are designed to prevent
unreasonable interference with the use of their respective units and of the
common elements by the several unit owners,

(g) That seventy-five percent (75%) of the unit owners,
computed on the basis set forth in Section 3(n) of this act, may at any time
modify or amend the bylaws, but each one of the particulars set forth in this
Section shall always be embodied in the bylaws. Such modification or amendment
shall not become operative unless set forth in an amended declaration and duly
recorded.

The administrator, or the board of administration, or
other form of administration specified in the bylaws, shall keep a book with a
detailed account, in chronological order, of the receipts and expenditures
affecting the common elements specifying and itemizing the maintenance and
repair expenses of the common elements and any other expenses incurred. Both
said book and the vouchers accrediting the entries made thereupon shall be
available for examination by all the unit owners at convenient hours on working
days that shall be set and announced for general knowledge.

The laws relating to homestead exemption from taxes by a
political subdivision of this state and the laws relative to homestead
exemption from attachment, execution, or other forced sale shall be applicable
to a unit ownership estate with the same force and effect as they are now or
shall hereafter be applicable to other estate in real property; and the benefit
of homestead exemption shall extend to the holder of a unit ownership estate in
all those cases where the owner of a single family dwelling would qualify
therefor. The title holder in a unit ownership estate shall be entitled, if
otherwise qualified, to a homestead exemption from ad valorem tax, if the land
upon which the building is located is held in fee simple.

Each unit, together with its proportionate interest in the
common elements, shall constitute a separate and distinct unit for the purpose
of assessment of taxes, special assessments, and other charges which may be
lawfully assessed against owners of real property, and each holder of a unit
ownership estate shall be liable solely for the amount of taxes against his
individual estate and shall not be affected by the consequences resulting from
the tax delinquency of other unit holders.

(a) All sums assessed by the council of unit owners for
the share of the common expenses chargeable to any unit which sums remain
unpaid shall constitute a lien on such unit prior to all other liens except the
following:

1. Assessments, liens, and
charges for taxes past due and unpaid on the unit,

2. Judgments entered in a court
of record prior to the date of common expense assessment,

3. Mortgage instruments of
encumbrance duly recorded prior to the date of such assessment,

4. Mechanic's and materialmen's
liens arising from labor performed or materials furnished upon a unit prior to
the date of such assessment, and

5. Mechanic's and materialmen's
liens for labor performed or material furnished upon the common elements to the
extent (sic) of the proportionate part chargeable to the unit owners which
constitute a part of an assessable charge for common expenses satisfaction of
which shall discharge the assessment to the extent of the payment made.

(b) The assessment lien may be foreclosed by suit
instituted by the council of unit owners or a duly authorized agent thereof in
like manner as an action for foreclosure of a mortgage upon real property.In any such foreclosure proceedings, the unit
owner shall be required to pay a reasonable rental for the use of his unit, if
so provided in the bylaws and the plaintiff in such foreclosure shall be
entitled to the appointment of a receiver to collect the same. The council of
unit owners, or their authorized agent, shall have power, unless prohibited by
the declaration, to bid in at the foreclosure sale and to acquire and hold,
lease, mortgage and convey the unit ownership estate acquired at the
foreclosure sale. Suit to recover money judgment for unpaid common expenses
shall be maintainable without foreclosing or waiving the lien securing the
same.

(c) Upon sale or conveyance of a unit encumbered by an
assessment lien, such lien shall be paid first, out of the sale proceeds or by
the grantee, subject only as aforesaid.

(d) Where the holder of a first mortgage of record or
other purchaser obtains title to the unit ownership estate as a result of
foreclosure of the first mortgage, such acquirer of title shall not be liable
for the share of the common expenses or assessments by the council of unit
owners chargeable to such unit which became due prior to acquisition of title
to such unit by such acquirer. Such unpaid share of common expenses or
assessments shall be deemed to be common expenses collectible from all the unit
owners, including such acquirer.

The grantee of a unit shall be jointly and severally liable
with the grantor for all unpaid assessments against the latter for his
proportionate share of the common expenses up to the time of the grant or
conveyance, without prejudice to the grantee's right to recover from the
grantor therefor. However, any such grantee shall be entitled to a statement
from the manager or Board of managers, as the case may be, setting forth the
amount of the unpaid assessments against the grantor and such grantee shall not
be liable for, nor shall the unit conveyed be subject to a lien for any unpaid
assessments in excess of the amount therein set forth.

The unit owners may, upon resolution of a majority, insure
the property against risks, without prejudice to the right of each unit owner
to insure his unit on his own account and for his own benefit.The premiums for such insurance on the
property shall be deemed common expenses except with respect to the units
exempted by the declarant pursuant to subsection (b) of Section 512 of this
title in which event the insurance premiums on such units shall be paid by the
declarant as provided in subsection (b) of Section 512 of this title.

The declarant and the council of unit owners may agree by
separate contract to insure the unconstructed buildings and/or units under the
same master policy of insurance as the council of unit owners may have obtained
for the property, as their respective interests may appear, in which event the
portion of the premiums charged for insuring said unconstructed buildings
and/or unconstructed units shall be borne by the declarant.

Except as hereinafter provided, damage to or destruction
of the building shall be promptly repaired and restored by the manager or board
of managers, using the proceeds of insurance, if any, on the building for that
purpose, and the unit owners shall be liable for assessment for any deficiency
except in the case of an unconstructed building which may be insured under a
master policy of insurance as described in Section 526 of this title, in which
event the declarant shall be liable for any deficiency relating to such
unconstructed building.

If there is substantially total destruction of the
property, or if seventy-five percent (75%) of the unit owners computed on the
basis set forth in Section 503 of this title duly resolve not to proceed with
repair or restoration, then and in that event the property or so much thereof
as shall remain, shall be subject to partition at the suit of any unit owner,
in which event the net proceeds of sale, together with the net proceeds of
insurance policies, if any, shall be considered as one fund except for the
declarant in respect to uncompleted units on which declarant is not making the
pro rata contribution described in subsection (a) of Section 512 of this title,
said fund shall be divided among all the unit owners in proportion to their
respective undivided ownership of the common elements, after first paying off,
out of the respective shares of unit owners, to the extent sufficient for that
purpose, all liens on the unit of each unit owner.

With respect to uncompleted units or uncompleted buildings
for which the declarant is not making pro rata contributions pursuant to
subsection (b) of Section 512 of this title, the declarant shall not receive
its portion of said fund according to its respective undivided ownership in the
common elements but shall receive net proceeds of sale according to the formula
described in paragraph (j) of Section 514 of this title and such proceeds of
insurance, if any, attributable to said uncompleted buildings and/or
uncompleted units under a master policy of insurance as permitted in Section
526 of this title.

The manager, or board of managers, as the case may be, and
their agents and employees shall have an easement to enter units to make
repairs to common elements or when the repairs reasonably appear to be
necessary for public safety or to prevent damage to property other than the
unit.

Ninety percent (90%) of the unit owners computed on the
basis set forth in Section 503 of this title may agree that the property is
obsolete in whole or in part and whether or not the same shall be renewed and
restored or the property sold and the proceeds of sale distributed. If such
percent of the unit owners agree to renew and restore the property, then the
expense thereof shall be payable by all the unit owners as common expenses. If,
however, such percent of the unit owners agree that the property be sold, then
the property shall be subject to partition at the suit of any unit owner, in
which event the net proceeds of sale shall be divided among all the unit owners
in proportion to their respective undivided ownership of the common elements,
after first paying off out of the respective shares of the unit owners, all
liens on the unit of each unit owner except a declarant not making pro rata
contributions pursuant to subsection (b) of Section 512 of this title shall
receive a reduced share of the proceeds in accordance with the same formula
described in paragraph (j) of Section 514 of this title.

Actions may be brought on behalf of two or more of the
unit owners, as their respective interests may appear, by the manager or board
of managers, with respect to any cause of action relating to the common
elements or more than one unit. Service of process on two or more unit owners
in any action relating to the common elements or more than one unit may be made
on the person designated in the declaration to receive service of process.

(a)All
unit owners, tenants of such owners, employees of owners and tenants, or any
other persons that may in any manner use property or any part thereof submitted
to the provisions of this act, shall be subject to this act and to the
declaration and bylaws of the council of unit owners adopted pursuant to the
provisions of this act.